Outlet Deals MAY be a good (and fast) Way To Reduce Inventory

Amazon

Here is what Amazon says about the outlet program:

You can proactively optimize your excess FBA inventory by taking advantage of the Amazon Outlet program to create Outlet deals. Outlet deals are Amazon-featured limited-time promotional offers displayed on the Amazon Outlet page. Featuring products via Amazon Outlet can help you boost sales, improve cash flow, optimize inventory levels, and reduce storage fees. You can use the Manage Excess Inventory page to identify eligible products and submit Outlet deals for approval using the menu to the right of eligible listings.

First the details

Customers shop Outlet for markdowns and deals on overstock, clearance products.. Amazon selects which offers are featured on the Amazon Outlet page. There are two types of offers.

  • Outlet deals are promotional offers submitted via Create an Outlet deal. Selected deals are featured on Outlet for a period fixed by Amazon, usually two weeks.
  • Outlet sales are the price reductions submitted via Create a sale. Selected sales are featured on Outlet based on factors that include customer demand and product star rating.

Outlet deals and sales can help you increase sell through, improve cash flow, optimize inventory levels, and reduce total storage fees. You do not have to pay additional fees for Outlet. Standard fulfillment fees and referral fees apply.

Now the Drawbacks

On the Manage Excess Inventory page, you can see which of your eligible products Amazon has recommended for Outlet, based on customer demand and other factors. A message under the item’s current price will show whether it is Outlet deal eligible (submit by creating an Outlet deal) or Outlet store eligible (submit by creating a sale).

To be eligible for Outlet, a product must:

  • Be currently available for sale and in Amazon fulfillment centers.
  • Have a sales history and at least a three-star product rating on Amazon.
  • Be in new condition.
  • Comply with Amazon’s customer product reviews policies and price policies.
  • Not be enrolled in Subscribe and Save.

Note: Not every eligible product will get an Outlet recommendation from Amazon. We evaluate ASIN eligibility regularly, so a recommendation you see today may not be there another day. Products featured as Outlet deals will not become eligible for Outlet again for 90 days after the deal ends. Updating your product settings may help improve our recommendations. (Click the Update product settings filter button on Manage Excess Inventory).

Notice the statements I have marked in bold face Italics – These are drawbacks that may block your outlet deal.

Now Some Good News

Outlet is currently free. You do not have to pay additional fees for Outlet. Standard fulfillment fees and referral fees apply.

Summary

Like many things with Amazon, the “devil is in the details.”  Before you get too excited, notice the 3-Star Product Review requirement.   The reason a product may not be selling is because of a low review score. (This could be left by a competitor, or just some ignorant buyer who did not understand the product).

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